What is the essence of cohort analysis?

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Cohort analysis allows business owners to learn a lot of useful information, from the average check on a specific trading platform to peak sales times. For serious entrepreneurs, this data is truly invaluable: based on it, you can create a portrait of an ideal client, optimize the sales cycle, and adjust the marketing strategy as a whole.

The only thing is that this tool should be used carefully and with knowledge of the matter. Incomplete and especially incorrect information can lead to the opposite effect: the business will outlook email list begin to incur certain losses. To avoid this, you should know exactly what cohort analysis is and how exactly it works.



First, we need to define what a cohort is. This term refers to a group of people united by specific characteristics. The concept of a cohort is often used by economists, marketers, and sociologists.

Cohort analysis allows studies to be conducted on different groups that exhibit certain common characteristics.

In order to better understand the needs of your audience, its condition must be analyzed regularly. But since this is not a homogeneous mass of people (there are newcomers, regular customers who joined at different times), it is difficult to submit to general analysis.

Cohorting involves grouping users according to certain characteristics to simplify the analysis of their behavior over different periods of time.

What is the essence of cohort analysis?

Source: Roman Samborskyi / shutterstock.com

The most common basis for grouping people into a cohort is the time period when they started using the app. Once users are divided into cohorts, you begin tracking their behavior and evaluating them based on key metrics. By analyzing the metrics of certain cohorts – for example, March and May – you can give an objective assessment of the corresponding product versions.

To make the analysis more complete and in-depth, it is necessary to single out smaller groups from the cohorts according to common criteria: traffic sources, platform, country and others that characterize this specific product.

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You'll likely notice that key metrics vary across different groups, just as product changes impact user behavior differently across different segments.

As the analysis shows, changes also concern the experience, characteristics and other attributes of the target audience that comes to you. For example, the same client buys different types of products in different months. Traffic channels also differ: one day he entered the platform through a mobile application, and another day - from a laptop.

So, we hope you understand that cohort analysis is a comparison of the behavior over time of different groups of users who have similar characteristics and attributes.